The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0316 GMT - The Singapore dollar consolidates against its U.S. counterpart in the Asian session amid mixed signals. On the one hand, "a potential U.S.-Iran deal reopening the Strait of Hormuz would be USD- negative via lower oil prices," two strategists of OCBC Group Research say in a report. On the other hand, the U.S. dollar's "downside should be limited by U.S. [economy's] outperformance," the strategists say. OCBC maintains a neutral stance toward the greenback, and expects the U.S. dollar to be firm but rangebound. The U.S. dollar is little changed at 1.2784 Singapore dollars, LSEG data show. (ronnie.harui@wsj.com)
0304 GMT - Manufacturing conditions in Southeast Asia improved in May, but trade disruptions and inflationary pressures stemming from the Iran war will likely continue to pose headwinds to growth, says Maryam Baluch at S&P Global Market Intelligence. S&P Global's manufacturing PMI for the region ticked up for the first time in three months in May, holding above the neutral 50.0 line separating expansion from contraction. Growth in new orders hit a three-month high while output rose at a moderate pace. Still, companies remain cautious about hiring, and continued to report substantial price pressures and longer delivery times. Export sales also fell for a third consecutive month, shrinking at the fastest pace since September 2024. (fabiana.negrinochoa@wsj.com)
0254 GMT - Australia's larger-than-expected increase to its minimum wage is unlikely to significantly move the dial on inflation, says Westpac economist Ryan Wells. Wells, who had anticipated a 4.25% rise rather than the 4.75% awarded by the country's wages umpire, points out that the increase only applies to about a fifth of the country's employees. He writes in a note that Westpac's initial estimate is that it will only add about 0.1 percentage point to their forecast for September-quarter wages growth. "It will not substantially add to the inflationary impulse," he adds. (stuart.condie@wsj.com)
0229 GMT - Japan and Australia are expected to be among the markets most likely to see further rate increases over the next six months, as core inflation in both countries have proven stickier than expected, says Nuveen, the investment manager of TIAA. Central banks in the Asia-Pacific region could adopt a cautious approach to monetary policy, balancing the need to support economic growth against the imperative to contain inflation. The Middle East conflict has posed a particularly acute challenge for regional economies given their significant reliance on energy imports from the Gulf, it says in an outlook report. Should core inflation continue to trend higher, signaling that second-round effects to consumer goods are materializing, policymakers are expected to tighten policy more decisively, it adds. (monica.gupta@wsj.com)
0128 GMT - The dollar is likely to weaken toward the 1,400 won level over the next 12 months, MUFG Bank's Michael Wan says in a research report. "KRW is one of our top picks from an FX perspective moving forward," the senior currency analyst says. Wan cites cheap valuations for the Korean won, a more hawkish BOK, South Korea's "gravity-defying" exports, a likely further improvement in the country's current-account surplus, and improvement in Korean corporates' earnings expectations. These will probably offset South Korean residents' outflows over time, Wan adds. The dollar is little changed at 1,513.80 won, LSEG data show. (ronnie.harui@wsj.com)
0108 GMT - Asian currencies consolidate against dollar as traders weigh Middle East developments. President Trump on Monday sought to quell a growing conflict between Israel and Hezbollah that threatens to derail U.S. peace talks with Iran. "We expect the U.S. and Iran to agree to gradually re-open the Strait of Hormuz and a 60-day extension of the ceasefire to negotiate Iran's uranium enrichment sometime this week," CBA's Kristina Clifton says in a research report. "Good news about the war ending will weigh on the USD because it is a safe-haven currency," the senior economist and senior currency strategist adds. The dollar is little changed at 159.67 yen, and 0.1% lower at 1,511.50 Korean won, LSEG data show. (ronnie.harui@wsj.com)
0107 GMT - Japan could be just one step away from a historic yen collapse as it faces the risk of a prolonged oil price surge and government fiscal loosening, says SMBC Nikko Securities strategist Makoto Noji. While cost-push inflation over the past three years has severely burdened the Japanese public, stimulating demand at this juncture would only accelerate inflation, Noji says. "I hope to see a rising sentiment that further yen-buying intervention is necessary, along with self-help efforts--specifically interest-rate hikes and sealing off fiscal expansion--to avoid inflation and a weaker yen," he says. Finance Minister Satsuki Katayama said Tuesday that the government would take appropriate action in the currency market if necessary.(megumi.fujikawa@wsj.com)
0018 GMT - Japanese stocks fall, weighed by economic uncertainty caused by the Iran war. Auto and chemical stocks are leading declines. Toyota Motor is down 2.9% and Shin-Etsu Chemical is 4.1% lower. The dollar is at 159.65 yen, compared with Y159.49 as of Monday's Tokyo stock market close. Investors are focusing on developments in the Middle East and their implications for the supply of energy and petrochemical products. The Nikkei Stock Average declines 0.4% to 66648.93. (kosaku.narioka@wsj.com; @kosakunarioka)
0006 GMT - JGBs edge lower in price terms in the morning Tokyo session as investors focus on Middle East developments. President Trump on Monday sought to quell a growing conflict between Israel and Hezbollah that threatened to derail U.S. peace talks with Iran. Another focus is the Japanese Finance Ministry's auction today of about 2.6 trillion yen of 10-year JGBs. The auction is likely to "clear smoothly," SMBC Nikko Securities' Miki Den says in a research report. "Market sentiment appears to be improving, as indicated by the super-long auctions in May clearing smoothly. There may be some short-covering demand as well," the senior Japan rates strategist adds. The 10-year JGB yield is up 0.5 bp at 2.685%. (ronnie.harui@wsj.com)
2348 GMT - Japanese stocks may rise as optimism over artificial intelligence-demand continues despite uncertainty over the Iran conflict. Nikkei futures are up 0.1% at 67115 on the SGX. The dollar is at 159.64 yen, compared with Y159.49 as of Monday's Tokyo stock market close. Investors are focusing on developments in the Middle East and their implications for energy prices. The Nikkei Stock Average rose 0.9% to a record 66934.33 on Monday. (kosaku.narioka@wsj.com)
2301 GMT - For UBS, Dexus is stuck in the "too hard" basket, despite trading at a 37% discount to net tangible assets. Reasons for caution include the lawsuit involving Australia Pacific Airports Corp. The court recently dismissed Dexus's claims and UBS thinks the case could stretch well into FY27 if Dexus appeals the decision. Investors will be watching whether those APAC shareholders represented by Dexus will be forced to sell their shares. Also, Dexus's funds from operations are challenged and a buyback program is unlikely to offer meaningful support, UBS says. And there are still questions about labor reliability, timelines and construction costs for Dexus's Waterfront Brisbane project, analyst Cody Shield says. "Of the large-cap A-REITs offering exposure to the office recovery thematic, we have a strong preference for GPT," UBS says. (david.winning@wsj.com; @dwinningWSJ)
1946 GMT - Treasury yields and the dollar pare down increases fuelled by reports that Iran is halting peace talks, after President Trump says negotiations are ongoing. Moves on bond and FX markets closely follow oil futures, as investors link energy prices to inflation and the possibility of high interest rates in the U.S. May U.S. PMI ticks higher and markets focus on the JOLTS report, due tomorrow. The WSJ Dollar Index rises 0.2%. The 10-year yield rises 0.022 percentage point to 4.475% and the two-year adds 0.038 p.p. to 4.051%, both off intraday highs. (paulo.trevisani@wsj.com; @ptrevisani)
(END) Dow Jones Newswires
June 01, 2026 23:16 ET (03:16 GMT)
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